You Are Going to Pay $100 into an Account at the Beginning

question 147

Multiple Choice

You are going to pay $100 into an account at the beginning of each of the next 40 years.At the beginning of the 41st year you buy a 30 year annuity whose first payment comes at the end of the 41st year (the accounts earn 12%) .How much will you receive at the end of the 41st year (i.e.,the first annuity payment) .Round to nearest $100.

• A) $93,000
• B) $7,800
• C) $11,400
• D) $10,700

---

Definitions:

Ego Integrity Versus Despair

According to Erikson, the eighth and final stage of psychosocial development, in which people in late adulthood either achieve a sense of integrity of the self by accepting the lives they have lived, and thus accept death, or yield to despair that their lives cannot be relived.

Approaching Death

The final phase of life leading up to death, often characterized by specific physical, emotional, or spiritual changes.

Neurotic Personalities

Personality traits characterized by anxiety, fear, moodiness, worry, envy, frustration, jealousy, and loneliness.

Negative Affect

A subjective feeling of distress and unpleasant emotions, such as sadness, anxiety, and anger.